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Corporate social responsibility (CSR) is a concept that has been studied for over 50 years. The concept was initially defined as the obligation of businesspeople to make policies and decisions in accordance with societal objectives and development (Bowen, 1953). Kotler and Lee (2005) discussed the role of philanthropic business activities and corporate resources in contributing to social development and stakeholder satisfaction (Barnett, 2007). Businesses have a social responsibility to consider the societal effects of their activities. Thus, companies should integrate environmental, social, ethical, and consumer concerns, and human rights into their daily business activities, and attempt to maintain a good relationship with stakeholders (European Commission, 2011).
Vietnam’s economy has been gaining success since the introduction of economic reforms in 1986. However, as an emerging country undergoing rapid economic development, Vietnam is facing a lot of social issues. Recently, the Vietnamese people have been experiencing high-level air pollution in big cities, such as Hanoi, Ho Chi Minh, and other industrial zones. In addition to air pollution, they are also encountering water and land pollution, mostly because of business activities. Hence, the Vietnamese have had to suffer a low quality of life. Furthermore, according to Nguyen, Ho and Vo (2018), like other emerging economies, Vietnam is facing different challenges in sustaining its economic growth. Thus, the question that arises is: which is more important, the economy or the society? It has been clearly indicated that the objective of CSR is to improve societal wellbeing. The performance of CSR should be examined through the lens of the different dimensions of responsibility. The most famous CSR concept is that of Carroll (1979), who identified the four main responsibilities of businesses: economic, legal, ethical, and philanthropic. According to Carroll (1991), the first responsibility is economic responsibility, which refers to the provision of products and services to meet societal needs and earn profits. The second responsibility is adherence to law and regulatory obligations. The last two types of responsibility are ethical and philanthropic responsibility. Ethical responsibility is the expectation of society that companies will conduct their business in line with ethical and social norms. Society also expects companies to initiate voluntary activities that are not required by society to contribute to social wellbeing. The fulfilment of these responsibilities enables companies to contribute to profitability and social needs. The outcomes of CSR practices are expected to help companies thrive. Carroll’s (1979) pyramid prioritizes the importance of each dimension (Schwartz & Carroll, 2003). However, all aspects should be treated alike in terms of their level of importance. Furthermore, Currás, Dolz, Miquel, and Sánchez (2018) suggested that CSR practices should have separate social and environmental dimensions. Thus, this pyramid needs to be extended to examine how different CSR aspects contribute equally to business success (Wang & Berens, 2015).
Many papers have examined the business case for CSR to determine how CSR can provide competitive advantage (Carroll & Shabana, 2010; Looser & Wehrmeyer, 2016; Rekik, 2016). Competitive advantage is an important concept in strategic management (Sigalas, 2015). According to Sigalas (2015), competitive advantage is defined by the drivers of performance. Performance can be demonstrated through profitability and superior operations; meanwhile, the determinants are cost leadership, location, and differentiation. However, the concepts of competitive advantage and performance are often used interchangeably, which can complicate the understanding of competitive advantage (Powell, 2001). Competitive advantage should be considered as a determinant of superior performance/business success. Competitive advantage is an intangible asset that helps companies to survive in the market.